Wayne Goode: State budget headed for shortfall
Missouri’s budget is likely to be $340 million in the red by June 30.
That was the bottom line this morning from former Sen. Wayne Goode, who is analyzing the state’s financial situation for Gov.-elect Jay Nixon. Goode, a former senator from St. Louis County, delivered his grim assessment in a conference call with reporters.
The numbers mean that Nixon, who will be sworn in on Jan. 12, will likely have to wield his budget axe immediately. By law, the state cannot run a deficit.
Goode wouldn’t speculate on how Nixon would cover the budget gap, saying only that the governor-elect is working on “efficiencies” and will announce some initial steps to control spending within the next few days.
Overall, Goode projected that because of the national recession, state revenue will run $623 million behind expectations this fiscal year. The fiscal year began July 1 and ends June 30.
The shortfall would be larger if the state had not had an $836 million surplus to offset some of the pain. While the Legislature already obligated most of the surplus, about $281 million can be used to help cover the gap.
In the biggest surprise, given their longtime animosity for each other, Nixon, a Democrat, and Gov. Matt Blunt, a Republican, are working cooperatively on the fiscal problems, Goode said.
What decisions will Jay make? Cut the spending, raise taxes, or both?
So typical for Jay. I see this as his way of saying off the bat he wants to raise taxes and use up the surplus. Too bad we didn’t have anyone good running.
Gov Blunt helped get us into the mess, this is not a mess Jay Nixon made!!! He just has to clean up what Blunt did!!!
I hope he cuts spending and raises taxes, as well as, chase off all the inbred short trolls Blunt has in that city. Apparently Steve never took econ at university.
Blunt didn’t create the mess - he cleaned up after Holden’s and Carnahan’s messes and still was able to develop an $800 million surplus. Now with demorats in charge of congress - we can only expect things to get worse before better. They need to clean up the mess they created especiallt Frank and Dodd.
jasonB - Why don’t you out yourself or get a new tag? Everyone’s dying to know who you are. Why are you so cowardly as to hide behind a pseudonym? Be a man.
From: the real Jay Barnes.
I, too, would like to know what Gov. Blunt did to cause “the mess”. Wasn’t it just a few months ago when a national survey found that Missouri has one of the best financial positions of any state. By contrast, we could be more than a billion in debt, if Boob Holden were to have been governor for a second term. Everyone loves to talk about “cleaning up” inefficiencies and loopholes, until someone actually does something about it. So, Gov Blunt did just that, and people still hate him for it. Are we to reinstate the loopholes and cause the mess again, just because someone moaned about being cut off from their gravy train. That means you have to cut elsewhere, such as transportation projects. I don’t think so!
Virginia,
I hate to have to ask you to actually think or report the facts but how was this surplus you mentioned created? By which Governor’s administration?
Why no repeated mentioning of Nixon’s promise to restore ALL of the social welfare programs during the free-spending Holden years?
Surely you’re not in the can for Nixon???
Yah…blame Nixon already…nevermind Blunt. Whatever. Nixon isn’t even in office yet and you people blame him for the rain. Grow up, get a job and see how the REAL world works.
I didn’t blame Nixon. I just wondered which of his campaign promises he’s going to break first.
RBN, please send more money to the state as you are in favor of higher taxes.